Pennsylvania PSERS approves $100m commitment to EQT Exeter Industrial Core-Plus IV

Institution: Pennsylvania Public School Employees’ Retirement System
Headquarters: Harrisburg, US
AUM: $72.47 billion
Allocation to alternatives: 33.2%

Pennsylvania Public School Employees’ Retirement System has approved a $100 million commitment to EQT Exeter Industrial Core-Plus IV, according to materials from a March 2022 investment meeting.

Founded in 2006, Exeter Property Group is a real estate investment manager focused on US investments in value-add and core properties. In January 2021, Exeter Property Group was purchased by Swedish private equity manager EQT and renamed EQT Exeter.

EQT Exeter Industrial Core-Plus Fund IV launched in July 2021 with a fundraising target of $2.5 billion and will seek investment opportunities in North America. Consistent with prior funds, Fund IV seeks to invest in modern distribution properties that exhibit high
occupancy, long lease terms, low capex requirements and creditworthy tenants.

The Fund targets approximately 130 to 150 equity investments in the range of $5 million to $75 million. The Fund’s predecessor, Exeter Core-Plus Industrial Fund III, held a final close in October 2019 at $1.3 billion, oversubscribed on its $1 billion target.

PSERS allocates $5.36 billion to private real estate investments, comprising 7.4 percent of its total investment portfolio. The public pension has a target allocation to private real estate of 8 percent.

As illustrated below, PSERS’ recent private real estate commitments have focused on opportunistic and core-adjacent vehicles that invest largely in North America.

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